Self-certified syndicate banks (SCSBs) facilitating application supported blocked amount (ASBA) scheme for share purchases are entitled to processing fee on forms procured by syndicate / sub-syndicate members and submitted with Scabs.
Announcing this, the Securities and Exchange Board of India (SEBI) today said it has made partial modifications to its earlier circular (dated 5 August 2009) entitling the syndicate or sub-syndicate members to commission on sales of ASBA forms procured by them as in the case of non-ASBA forms.
For ASBA forms procured directly by Scabs, they would be entitled to commission on sales only and will not be entitled to processing fee, SEBI said in a circular.
Merchant bankers should ensure appropriate disclosure in the offer documents, specifying the range of fee that Scabs would be entitled to processing such ASBA forms procured by syndicate members/ sub-syndicate members and submitted to Scabs, the market regulator said.
Merchant bankers can also now file offer documents in respect of public issues of size up to Rs100 crore with the concerned regional office of SEBI under whose jurisdiction the registered office of the issuer company falls, SEBI said in another circular
This, however, would necessitate some modification in existing processes and systems, which, SEBI said, would be communicated in due course.